I assume that you have already read part 1 and part 2 of this series.
If not, you know what to do. Go and do so now.

The next 3 instruments I will cover are:
  • GoldMoney savings & payment platform
  • Co-ownership plans
  • Exchange traded funds (ETFs)


GoldMoney - Savings & Payments in Gold

I have saved the best for the last post, but I won't keep it from you any longer. This whole section is an amendment/addition, as I only discovered this amazing company in 2016.  

GoldMoney is something that I found recently and it is the most amazing and secure concept ever! With GoldMoney, you can buy physical vaulted gold within 1% of the current spot price of gold, which means that it is even cheaper than krugerrands. You can either take possession of it or have it stored in secure vaults in over 10 locations around the world, at no charge to you. The company is fully accredited and the security is handled by The Brinks Company, a world leader in security. Your gold is fully allocated to you and 100% insured. What this means is that no matter what happens...even if GoldMoney itself should disappear or go bust for some reason...your gold will still belong to you and you will have 100% legal right to it. The gold is never owned by GoldMoney after purchase, it is fully owned by the customer. They have a website portal and an app where you can manage your account from. 

You can check out the company with my affiliate link at Goldmoney.com for more info. 



Co-ownership plans

The co-ownership plan is a very innovative method where one can buy parts of coins in sections of 1/10th at a time. So you can buy a 1/10th share in a 1/4 oz coin for example, or 2/10th share in a 1/10th oz coin. In this way you can also further diversify your portfolio buy investing in a mix of different coins using the same amount of money, instead of just investing in one coin. Different coins might appreciate in value at different rates, so you spread your risk. Over time, you can buy more and more shares in a coin until you have all 10 shares of it. Of course, in this case you cannot take physical possession of the coin unless and until you have bought all 10 parts of it.

I have left the above paragraph here as information for my readers in case it interests you, but the service I have received from Investgold lately leaves me to not recommend them for anything other than buying krugerrands any more. (15 July 2016


NewGold ETF

This is a method that I only discovered recently, and think it's great (still not as awesome as GoldMoney though). It is called the ABSA NewGold Exchange Traded Fund (ETF). Although it does not involve taking possession of physical gold coins, you are in fact buying physical gold by buying into a listed fund on the JSE. This fund is managed by ABSA Capital.

The brochure can probably give you a much more accurate explanation of it than I can, so I've included a link to it here.

The fund tracks the Rand value of the gold price, and trading is done by buying shares of the gold commodity on the Johannesburg Stock Exchange. The physical gold is held in a secure, off-site vault. This is a global commodity, managed by a reputable local financial institution, using local currency, with local online, email and telephonic support. These are very important factors to consider, as you do not want to handle something like this that's managed from another country on the other side of the world, unless you really, really know what you are doing and are already comfortable with international transactions.

There are minimum investment amounts (R300 per month debit order or R1,000 lump sum), but besides for the minimum, one can invest any amount. You can invest a lump sum, or sign up for a monthly debit order, or both. Shares consist of the value of 1/100th of an ounce of gold, and the purchase doesn't have to be a whole number. In other words, if you want to invest R500 and the share price is R136.67, then you would be purchasing 3.658 shares. The share price, bid price, asking price and closing price are all available, updated daily on the fund's website.

This method of investing is similar to investing in krugerrands, so it is also a medium to long term investment. Massive short-term gains do occur occasionally, especially after the commodity recovers from a correction, but it should not be expected to be the norm. A 5-year period should be the target investment time to get a good return. However, the funds are available to access should you require it in a shorter term than that.

The ETF instrument also has the added advantage of being ever so slightly cheaper than gold coins. It does, however, carry brokerage fees. At 0.4% p.a., the fees are very miniscule and really shouldn't even be a consideration. You will be allocated an online portal as well (at no charge), where you can view the exact value of your investment at any time, 24/7/365, anywhere you have internet access.

If you would like some more technical data about the fund, you can find it here.
    

Further research

There are other instruments to invest in gold as well, such as IG Markets (an online gold trading platform) and investing in gold shares (which can bring far greater returns, but at a much higher risk). I will not be going into those because I don't have enough knowledge about those concepts to accurately impart it to you. But know that it is available for you to explore and delve into if you are interested.


This brings me to the end of the series of posts on gold. I hope it has been useful and that you've learnt something. I also hope that this information has planted a seed, and empowers you to take action and take advantage of this incredible opportunity that we have, and that it helps you in your wealth-building journey. Also, don't just take what I said as gospel. Do some further research and empower yourself with as much knowledge about this subject as you possibly can. Knowledge is power.

I would really appreciate some feedback, and even questions if you still have any. Feel free to make use of the comments section below this post.

*If you are Muslim, just a reminder that gold and any other precious metals form part of your wealth, and is therefore subject to payment of charity under the rules of Zakat.